Too busy to post but too good to pass up.
…Ron Paul…doesn’t even have a basic understanding of fundamental economics…
(HT to Lew Rockwell)
June 15, 2010 • 4:29 AM 0
October 18, 2009 • 3:23 PM 1
I was reading through some old notes in preparation for an upcoming economic discussion when I came across this essay. It’s one of the best cases of, and explanations for, the gold standard that I’ve ever read. I’m keeping the author a mystery. Wait ’til the end to click the link to see who wrote it. Simply amazing.
Gold and Economic Freedom
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.
In order to understand the source of their antagonism, it is necessary first to understand the specific role of gold in a free society.
Money is the common denominator of all economic transactions. It is that commodity which serves as a medium of exchange, is universally acceptable to all participants in an exchange economy as payment for their goods or services, and can, therefore, be used as a standard of market value and as a store of value, i.e., as a means of saving.
The existence of such a commodity is a precondition of a division of labor economy. If men did not have some commodity of objective value which was generally acceptable as money, they would have to resort to primitive barter or be forced to live on self-sufficient farms and forgo the inestimable advantages of specialization. If men had no means to store value, i.e., to save, neither long-range planning nor exchange would be possible.
October 13, 2008 • 6:14 AM 0
If you think you’ve protected yourself from the financial turmoil surrounding us by investing in one of the gold ETFs (GLD, IAU), think again. Steven LaTulippe reminds us that inflation is governmental policy and government will not tolerate anyone escaping their dastartdly deeds:
The reason governments inflate their currency is to surreptitiously confiscate wealth from those individuals who store their wealth in that currency. If too many citizens shield their wealth by investing in gold, they nullify the entire scam. Inflation “works” because citizens are forced – by legal tender laws – to store their wealth in a medium controlled by the government. As a government counterfeits its currency, it sucks wealth from all of those people who hold that currency.
The government cannot tolerate too many of its citizens successfully evading inflationary confiscation. In a worst-case scenario, a headlong rush into gold would destroy the dollar completely as individuals replaced it with gold as a medium of wealth storage and exchange.
This cannot be permitted under any circumstances, since it would undermine the very foundations of our governing elite’s power.